MAT 144 Week 1 Discussion

MAT 144 Week 1 Discussion | Assignment Help | Grand Canyon University 

Topic 1 Discussion 1

In Chapter 1 of the text (1-13) you will look at calculating a monthly payment for a loan.  A simpler problem is to compute the amount a loan would cost you in one month.

Using information from an internet source, determine the current interest rate a credit card or loan. Suppose you borrow $1000 (or spend $1000) on a credit card. How much will you owe in one month? 6 months if you pay nothing for 6 months?

Compute the 6-month cost in two ways:

1.      Make 6 monthly computations. Enter these as formulas in a spreadsheet. (The goal here is really getting you to use spreadsheets and formulas for computations.)

2.     Use the formula, A= 1000(1 + r)^N where N = the number of periods (6) and r = the periodic interest rate = APR/12, where APR is the annual percentage rate.